Question

A wholesaler purchases widgets for $8 per unit from the manufacturer and it sells it after marking up by 20% on retailer purchase price. Afterwards, the retailer marks up by 50% on wholesaler selling price and sells to consumers at the store. Here, Wholesaler markup is $2 Retail selling price is $15

Retailer markup is $5 Wholesaler selling price is $10
All the following (b) through (e) are true

Answer 1

To find the original retailer purchase price and the manufacturer's price, we can use the given information and solve for x in the equation x + 2 + 5 = 15, where x represents the original retailer purchase price. The original retailer purchase price is $8, which is the same as the manufacturer's price.

Step-by-step explanation:

To solve this problem, we need to calculate the original retailer purchase price and the original manufacturer's price. Let's assume the original retailer purchase price is x. Given that wholesaler markup is $2 and retailer markup is $5, we can write the following equation: x + 2 + 5 = 15. Solving for x, we find that the original retailer purchase price is $8.

Since the wholesaler purchases widgets for $8 per unit from the manufacturer, we can conclude that the original manufacturer's price is also $8 per unit.

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